> For the complete documentation index, see [llms.txt](https://docs.inter.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.inter.trade/user-how-to/minting-ist/minting-ist-vaults.md). # Minting IST - Vaults Vaults are over-collateralized upon creation subject to governed parameters as set by the Economic Committee. ### Fees Vaults are subject to both a minting fee and a stability fee. In the event of a liquidation, vault holders are also subject to a liquidation penalty. **Minting Fee** -> This is a once-off fee charged in IST each time you mint and IST amount i.e. upon creation of the fault and when you adjust vault to mint more. This is also a governed parameter set by the Economic Committee. **Stability Fee** -> This is ongoing cost of holding the debt position. It is charged in IST and calculated as % APY. It is added to you IST debt position over time. It is a governed parameter set by the Economic Committee. **Liquidation Penalty** -> In the event of severe market movements, the value of your collateral may drop below the liquidation ratio. If this occurs and you do not take action to add additional collateral or repay some IST debt to increase your collateralization ratio, your vault will be liquidated in order to repay the outstanding IST debt. In addition to this you will be charged a liquidation penalty, charged in collateral asset type which will be sent to the reserve. This is a governed parameter set by the Economic Committee. **Note:** It's important to keep an eye on your collateralization ratio and to avoid liquidation. To reduce the risk of liquidation, it is recommended you keep your collateralization ratio at an adequate level that would weather severe market movements. ### Using Assets as Collateral You will need to IBC transfer assets to the Agoric chain in order to use them as Vaults collateral. You can do this via Agoric's Smart Wallet 'Deposit' feature. More instructions on this and other Vaults actions below: * [Create a Vault](/user-how-to/minting-ist/minting-ist-vaults/create-a-vault.md) * [Adjust Vault](/user-how-to/minting-ist/minting-ist-vaults/adjust-vault.md) * [Close Vault](/user-how-to/minting-ist/minting-ist-vaults/close-vault.md) * [Depositing assets to Agoric chain (to use as Vaults collateral)](/user-how-to/minting-ist/minting-ist-vaults/depositing-assets-to-agoric-chain-to-use-as-vaults-collateral.md) --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.inter.trade/user-how-to/minting-ist/minting-ist-vaults.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.